How Offering Novated Leasing Can Help Your Business?

In today’s competitive job market, businesses are always looking for ways to stand out to attract skilled employees and retain their best talent. Employee mobility is high and many people have no qualms about quietly leaving a workplace for greener pastures. It is more important than ever for organisations to retain their talented staff.

One often overlooked yet powerful tool for achieving this is offering novated leasing as part of your employee benefits package. A novated lease not only provides significant financial benefits for employees but can also enhance your company’s appeal as an employer of choice.

How Offering Novated Leasing Can Help Your Business Attract and Retain Top Talent?

Here’s how offering novated leasing can give your business an edge in attracting and keeping top talent.

1. A Valuable Employee Benefit That Makes a Difference

When job seekers evaluate potential employers, they often look beyond salary to the total compensation package offered. Novated leasing allows companies to provide a unique benefit that can save employees money and simplify the process of getting a new vehicle. Better yet it doesn’t cost the organisation any money to implement!

Here's how it works:

Tax Savings for Employees:

With a novated lease, employees use their pre-tax salary to pay for their vehicle, which can significantly reduce their taxable income. This makes car ownership more affordable, providing a tangible financial advantage that many employees value.

Bundled Costs for Convenience:

A novated lease often includes vehicle registration, insurance, maintenance, and fuel or charging costs. For employees, this means that many of the hassles of vehicle ownership are handled automatically, making a novated lease a simple and attractive option.

2. Attract Top Talent with a Tax-Efficient Way to Drive a New Car

For many potential employees, particularly those in middle and high-income brackets, a novated lease represents a more tax-effective way to finance a car than traditional loans. This makes it an appealing perk for professionals looking to save money on their vehicle.

Appealing to Tech-Savvy Candidates:

Many professionals in industries like technology, engineering, and finance are drawn to electric vehicles (EVs) due to their low running costs and sustainability. Offering novated leasing with options for EVs or hybrids can position your company as forward-thinking and environmentally conscious. This appeals to candidates who value sustainability and cutting-edge technology.

Attracting High-Income Earners:

Novated leasing can provide significant tax savings for high-income earners, making it particularly attractive to senior professionals, managers, and executives. By offering a tax-efficient way to drive a new car, you make your overall compensation package more appealing to these individuals.

This approach can give you a competitive edge when recruiting top talent, especially in industries where candidates are comparing multiple job offers and weighing the total value of their compensation.

3. Improve Employee Satisfaction and Retention with Added Perks

Employee retention is just as important as attracting new talent. High turnover can be costly, both in terms of recruitment expenses and the loss of institutional knowledge. By offering novated leasing as a part of your benefits, you provide an added incentive for employees to stay with your company. Here’s how novated leasing can help boost employee satisfaction:

Enhanced Financial Wellbeing:

When employees save money on their car through tax-efficient lease payments, it contributes to their overall financial wellbeing. Employees who feel that their employer is helping them manage their finances are often more satisfied and loyal.

A Reward for Long-Term Service:

Offering novated leasing as an option after an employee reaches a certain tenure can serve as a reward for long-term service. This can encourage loyalty and provide a clear incentive for employees to stay with your company.

Access to New Vehicles:

Many employees appreciate the opportunity to drive a new or near-new vehicle without the hassle of buying outright. A novated lease allows them to upgrade their vehicle every few years, keeping them happy with the latest features and technologies without the burden of selling an old car.

4. Cost-Effective Benefit for Employers

For businesses, offering novated leasing can be a cost-neutral benefit. The lease payments are deducted directly from the employee’s salary, meaning there’s no direct financial burden on the employer. In fact, it can lead to cost savings in certain areas:

Potential Payroll Tax Savings:

Because novated leasing reduces an employee’s taxable income, it can also lead to lower payroll tax obligations for the employer. This is particularly valuable for businesses with large workforces, where even small savings on payroll tax can add up.

Improved Recruitment Costs:

Attracting and retaining top talent means less money spent on recruiting and training new hires. By offering a benefit like novated leasing, you make your job offers more competitive, potentially reducing the time and cost of recruitment efforts.

Enhanced Employer Branding:

Being known as a company that provides unique and valuable benefits can boost your reputation in the job market. When job seekers hear that your company offers novated leasing, it can differentiate you from competitors who may not offer the same benefit.

5. How to Implement Novated Leasing in Your Business

If you’re considering adding novated leasing to your employee benefits package, it’s important to work with a reliable novated lease provider who can guide you through the process.

Here’s how to get started:

• Partner with a Trusted Provider: Choose a leasing company like CarBon Novated Leasing that offers competitive rates, excellent customer service, and a wide range of vehicle options.
• Educate Your Employees: Host webinars, send out information packs, or set up Q&A sessions with the leasing provider to ensure that employees understand the benefits of novated leasing and how it can save them money.
• Integrate into Salary Packaging: Work with your HR and payroll teams to seamlessly integrate novated leasing into your salary packaging offerings. This makes it easy for employees to opt in and start saving.

Novated Leasing Is a Win-Win for Businesses and Employees

By offering novated leasing as part of your employee benefits package, you can enhance your company’s appeal in the job market, attract top talent, and keep your existing team satisfied.

The tax savings, convenience, and access to new vehicles make it a valuable perk for employees, while the cost neutrality and potential payroll tax savings benefit employers.

As competition for skilled professionals continues to grow, providing unique benefits like novated leasing can give your business the edge it needs to stand out. If you’re ready to explore how novated leasing can work for your company, reach out to CarBon Novated Leasing today to learn more.